Otis Worldwide Corporation · NYSE:OTIS

Otis Worldwide — Zardoya Otis — Q3 2019 Earnings Presentation

26 slides from Otis Worldwide's earnings presentation, October 2019

  1. Slide 1: Made to move you

  2. Slide 2: Results

    Results © 2019 ZARDOYA OTIS, S.A.

  3. Slide 3: Macroeconomics

    Macroeconomics SPAIN MOROCCO PORTUGAL HOUSING MARKET CPI Spain 2007: > 500 mil 4% 800 600 2% 1,9% 1,3% 400 1,2% 0% 200 64.354 0 10.700 -2% 93 95 97 99 01 03 05 07 09 11 13 15 17 18 2012 2013 2014 2015 2016 2017 2018 2019 Source: Portugal: Euroconstruct ; Spain: Ministry of Development UNEMPLOYMENT R

  4. Slide 4: Sales (Q3-YTD)

    Sales (Q3-YTD) (€ millions) 597 549 569 570 +4,7% 533 +3,0% +3,6% +0,3% (1,2%) 21,0% 19,7% 22,3% 22,7% 20,9% Export 71,0% Service 75,2% 72,4% 71,3% 71,9% New Equipment 5,1% 5,3% 6,0% 7,2% 8,0% 2015 2016 2017 2018 2019 © 2019 ZARDOYA OTIS, S.A. 4

  5. Slide 5: EBITDA & Profit after Taxes (Q3-YTD)

    EBITDA & Profit after Taxes (Q3-YTD) EBITDA (€ millions) 167,8 164,5 158,8 150,5 152,4 2015 2016 2017 2018 2019 Serrano, 1 (Madrid) Profit after Taxes (€ millions) 107,2 108,1 109,6 105,6 103,6 Alcalá 21 (Madrid) 2015 2016 2017 2018 2019 © 2019 ZARDOYA OTIS, S.A. 5

  6. Slide 6: Sales & EBITDA by Quarter

    Sales & EBITDA by Quarter (€ millions) 213,9 196,5 200,5 202,2 188,0 194,4 186,0 51,7 58,2 53,9 50,0 48,8 48,4 50,1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2018 2019 EBITDA SALES © 2019 ZARDOYA OTIS, S.A. 6

  7. Slide 7: Sales by Activity & by Quarter

    Sales by Activity & by Quarter (€ millions) 197 194 201 202 188 186 44,0 38,8 46,1 38,1 40,6 37,2 138,6 139,2 144,6 140,1 136,5 134,8 13,3 14,0 13,9 14,7 16,9 16,1 Q1 Q2 Q3 Q1 Q2 Q3 2018 2019 NEW EQUIPMENT SERVICE EXPORT © 2019 ZARDOYA OTIS, S.A. 7

  8. Slide 8: Orders received (Q3-YTD)

    Orders received (Q3-YTD) (€ millions) Portugal 155 159 Morocco +12,2% 146 +8,4% 138 (5,8%) Spain +44,8% Colonial - Madrid 96 +18,0% Marriot Hotel - Portugal 2015 2016 2017 2018 2019 Extension Airport - Morocco © 2019 ZARDOYA OTIS, S.A. 8

  9. Slide 9: Backlog of unfilled orders (Q3)

    Backlog of unfilled orders (Q3) (€ millions) Portugal 149 153 156 +1,5% Morocco +13,0% +2,7% 132 Spain +36,0% 97 +6,9% Princesa Hotel - Madrid Internacional Hospital Azores 2015 2016 2017 2018 2019 © 2019 ZARDOYA OTIS, S.A. 9

  10. Slide 10: New Equipment Sales (Q3-YTD)

    New Equipment Sales (Q3-YTD) (€ millions) +15,7% 47,7 +21,4% 41,2 +15,9% 34,0 +7,9% (7,5)% 29,3 27,2 2015 2016 2017 2018 2019 © 2019 ZARDOYA OTIS, S.A. 10

  11. Slide 11: Service Sales (Q3-YTD)

    Service Sales (Q3-YTD) (€ millions) +3,4% +2,0% +1,0% 423,9 (0,9)% (0,8%) 405,7 409,9 400,8 397,7 2015 2016 2017 2018 2019 © 2019 ZARDOYA OTIS, S.A. 11

  12. Slide 12: Portfolio evolution – Number of Units (Q3)

    Portfolio evolution– Number of Units (Q3) 3er Quarter 2019 293.120 Units 59.933 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 12 © 2019 ZARDOYA OTIS, S.A.

  13. Slide 13: Export Sales (Q3-YTD)

    Export Sales (Q3-YTD) EXPORTS BY REGION (€ millions) +5,6% +5,2% +16,1% 129,0 Europe (7,5%) 125,5 55% 122,2 119,3 (0,6)% 105,2 Middle North East Africa America 18% 1% 7% Latam Asia 2015 2016 2017 2018 2019 9% 10% © 2019 ZARDOYA OTIS, S.A. 13

  14. Slide 14: % Variation - Market value vs Ibex 35

    % Variation - Market value vs Ibex 35 - (01/12/2018 – 18/10/2019) 25,0% Zardoya Otis - % Market Value Variation IBEX 35 Index - % Variation 20,0% 15,0% 10,0% 5,0% 5,1% 2,8% 0,0% -5,0% -10,0% DEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT Source: www.bolsamadrid.es © 2019 ZARDOYA OTIS, S.A. 14

  15. Slide 15: Shareholder remuneration – 2019

    Shareholder remuneration – 2019 Gross per Shares entitled to Date Charged to Total paid dividend share (*) January 10th 0,080 € 3rd interim 2018 470.464.311 37.637.144,88 € (**) April 10th 0,080 € 1st interim 2019 470.464.311 37.637.144,88 € Charged to July 10th 0,080 € 470.092.555* 37.607.404,40 €

  16. Slide 16: Safety

    Safety © 2019 ZARDOYA OTIS, S.A.

  17. Slide 17: Incident rate – Sector Comparison

    Incident rate– Sector Comparison INDUSTRIAL SECTOR CONSTRUCTION SECTOR OTIS GROUP 188 188 183 175 173 164 159 152 153 150 135 139 129 132 128 113 97 96 116 115 83 107 110 106 78 77 100 100 104 100 102 100 102 74 70 73 93 97 68 64 89 91 60 63 79 57 64 41 37 40 38 66 35 30 61 24 24 57 52 53 54 53 23 4

  18. Slide 18: Safety and Technical Training

    Safety and Technical Training • Annual training plan (Safety and Technical) with objectives at supervisor level. Follow-up by the Steering Committee and communication in monthly statistics. • Monthly Safety meetings between technicians and supervisors in all centers with specific contents to control

  19. Slide 19: Incident and Accident investigation process

    Incident and Accident investigation process Incident or accident at work, public or environmental Report to Prevention Start of local research Reconstruction Cause analysis Action plan (sequence of facts (corrective and Follow up and Service (EHS Dept.) with support from the (direct and root and cau

  20. Slide 20: Integra

    Integra © 2019 ZARDOYA OTIS, S.A. 20

  21. Slide 21: Integra - Benefits and Estructure

    Integra - Benefits and Estructure Benefits Estructure • Priority in Safety • Stable costs Total Employees 185 (July 19) • Quality in installation (training, support and • Manager monitoring of projects) • Two regional responsibles • A safety coordinator • Installation capacity increase • An accounta

  22. Slide 22: 2019 Productivity Evolution and workforce

    2019 Productivity Evolution and workforce Productivity Hiring evolution (accrued data) 98 62% 64% 60% 86 89 55% 56% 57% 82 81 75 74 46% 49 52 37 26 25 Jan Feb March April May June July June 18 Sept 18 Dec 18 March 19 July 19 Sept 19 Productives Aprenttices © 2019 ZARDOYA OTIS, S.A. 22

  23. Slide 23: Digital Services

    Digital Services © 2019 ZARDOYA OTIS, S.A.

  24. Slide 24: Digital Vision

    Digital Vision Digitalize to Reduce Costs by optimize Customer task and visits (RM, RI & IoT) eXperience & Cost Reduction Loyalty European Code Compliance in Bi-directional Comm (EN 8128) Generate new income by new services and advertising. European New Code Improve the Customer eXperience & Income

  25. Slide 25: Installed Platform Devices

    Installed Platform Devices MPDS GUARDIANS 13.449 81.287 12.406 71.798 10.845 59.078 9.232 7.701 46.095 33.108 2015 2016 2017 2018 2019 YTD 2015 2016 2017 2018 2019 YTD Cummulative Cummulative © 2019 ZARDOYA OTIS, S.A. 25

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